Netflix's first quarter 2026 revenue grew 16% while EPS was significantly boosted by a $2.8B one-time fee.

Netflix reported first-quarter revenue of $12.25 billion (+16% YoY) and diluted EPS of $1.23, beating consensus estimates of $12.18 billion and $0.76, respectively. The significant earnings beat was largely driven by a one-time termination fee related to the abandoned Warner Bros. transaction.

Key Highlights

• Diluted EPS of $1.23 was well ahead of the company's $0.76 forecast, driven by higher operating income and a $2.8 billion termination fee from the Warner Bros. deal.
• Management reaffirmed its full-year 2026 forecast, including its target to reach approximately $3 billion in advertising revenue, noting the ad-supported plan represented over 60% of all sign-ups in available markets during the quarter.
• Full-year 2026 free cash flow guidance was raised to approximately $12.5 billion, up from a previous projection of $11 billion, due to the after-tax impact of the termination fee.
• The company announced that co-founder Reed Hastings will not stand for re-election as a director at the 2026 annual meeting.